Karachi, September 07, 2023 (PPI-OT): KSE-100 likely to re-test resistance at the 50-DMA

KSE-100 index showed positive movement to close at 45,808, up 316 points. Volumes stood at 140mn shares versus 123mn shares traded previously. The index is expected to re-test resistance at the 50-DMA that is currently at 46,041 where a break above that will target 46,349 and 46,932 levels. However, any downside will find support in the range of 45,450-45,710 levels. Meanwhile, the RSI and the Stochastic Oscillator have improved, suggesting a recovery trend ahead. We recommend investors 'Buy' above the 50-DMA. The support and resistance are at 45,560 and 45,954 levels, respectively.

PSO: A bullish formation

Strategy: 'Buy on dips' - targeting Rs117.84 and Rs121.12; stoploss at Rs111.52.

HCAR: Recovery to continue

Strategy: 'Buy on dips' - targeting Rs117.16 and Rs122.42; stoploss at Rs110.73.